The new-age entrepreneurs are smart thinkers who know how to make the most of an opportunity. The cost-saving strategies employed by these dynamic individuals have given birth to a new category called home-based businesses. Over the years, such entities have mushroomed across the length and breadth of the country.
According to a recent survey, 69% of entrepreneurs in the United States start their businesses at home. There are several examples to prove it, with the most famous one being Jeff Bezos. The founder of the e-commerce giant Amazon, Bezos started the company from his house in Seattle and is now the richest man in the world.
A parallel can be drawn with Steve Jobs, who started Apple from his garage and Mark Zuckerberg, who launched Facebook from his dormitory at Harvard. The connectivity offered by high-speed internet has made working from remote locations a possibility. So if you are planning to start a company or purchase a profitable business for sale in the United States, you must be aware of the requirements of starting a home-based business.
It can come handy if you plan to save on the cost of leasing a property for the office. So here is a comprehensive guide on starting a home-based business. However, before we go forward, you need to make sure that you are prepared to take the challenge by identifying your abilities.
Are You Ready For Starting A Home-Based Business?
The first thought that comes to mind when you are working from home is whether you would be able to commit specific working hours or not. It can become difficult to concentrate when you have the doorbell ringing, kids running around and pets rolling on the floor and asking you to play with them.
Even if you are alone at home, do you think you can restrain yourself from picking up the TV remote or watching a live game? You should only transform your home into an office when you are absolutely sure about devoting time to work without getting distracted.
Another critical aspect of a home-based business is that you will have to be on your toes all the time. You will be multi-tasking as there will be no staff to take care of the administrative, financial and accounting work. Also, you won’t have any backup or helping hand if you wish to go out for some time. So give some thought to the consequences before taking the plunge.
Steps To Launch A Home-Based Business
1. Determine The Type Of Business
The most important thing to consider before jumping the bandwagon is to identify your skills and keep your background and qualification in mind. Do not just go by the market potential of a business. As you will be running a one-man-show, you must be well-versed in the domain and have the required technical know-how to run the business smoothly.
If you are good at baking, you can start selling home-made bakery items with nutritional options like gluten-free pastries or whole wheat bread etc. Once you have figured out the industry, you need to undertake market research and competition analysis followed by writing a business plan and getting funds for the business start-up expenses.
2. Follow Legal Procedures
You need to choose the structure of your business, such as a Sole Proprietorship, Partnership, Limited Liability Company, Corporation, Non-profit, Cooperative, etc. After that, pick a name for the business and get it registered. You will be provided with an Employer Identification Number which will enable you to pay state and federal taxes.
Get the required licences and permits depending upon the nature of your business, and then open a business account for all the business transactions. Don’t forget to get business insurance, which will save you from natural disasters and lawsuits.
3. Set Up Your Home Office
A significant portion of your start-up budget will be spent on setting up the office. You will have to procure all the stock and equipment and place it in the area designated as your office. You will have to make room for the set-up by removing all the additional fixtures and furniture so that there is no disturbance.
You will have to ensure that there is enough space to accommodate all the stuff and work conveniently in an organised manner. It must have ample space for your workstation so that you can do the documentation part easily.
4. Create A Schedule
Since you will be working from home, it is easy to take a nap or walk whenever you want. However, you need to create a schedule to keep things under control. Decide the number of working hours for each day, and you can space them with breaks to enjoy flexibility and family time. Stick to the schedule and do not stray from it at any cost.
You can install small business automation tools to save time and improve the efficiency or outsource specific tasks to independent contractors who can be hired at reasonable prices.
5. Start Networking
With a small home-based business, you would not be able to interact with other professionals and identify new opportunities. Thus you need to go out and join professional groups in your community as well as online. Contact old colleagues and create business associations.
Talk to like-minded people and find out about the latest business trends. These connections will help in promoting your products/services through word of mouth publicity.
6. Market Your Business
Set up a website and social media profiles for your business so that it gets visibility online. You must have a Google My Business page which will help the local customers to find your products and services when they type a related search query. Launch email marketing and Google Ads if you have the marketing budget as these are relatively cheaper and can fetch you a lot of leads.
7. Manage Your Finances
Don’t go overboard with the idea of creating a plush office. You can utilise your personal laptop and printer, in the beginning, to keep costs under control. Purchase accounting software to manage the accounts and keep them up-to-date. Comply with the federal, state, and local tax laws and claim tax deductions.
You must have an accurate business credit history and pay all the bills on time. An important thing to consider here is to keep the personal expenses separate from business expenses as the lines can get blurred when you are operating from home. For instance, you cannot put the entire electricity bill in the business expenses column.
Home-based businesses have become dominant players in the economy and are gaining momentum. If you are looking for home-based businesses for sale in the United States, refer to this guide to ensure that you manage it effectively.